With the holidays ramping up, here is a little seasonal business whimsy from Byron Richards, as it first appeared in our inaugural issue. (J.T.)
Another holiday season is quickly coming upon us and some mysteries remain unsolved. How does Santa stay in business?
Sure he has awesome brand awareness, the kind that we all dream about. Everyone in the world knows his name. However, his target market are “good” kids who have no money and even worse, he gives his toys away! I don’t care if he has a free labour source in his “elves”, not a lot of businesses survive by not charging for their goods or services. His only payment is milk and cookies at our homes, or in my case, the wine and crackers with cheese my mom gave him.
Santa stays in business by taking all year to plan for the one big night when he hits every house in the world despite time zones, international date lines, and travel time. That’s a plan I would love to see but unfortunately it’s as protected as KFC’s eleven herb and spices. However, there is a lesson to be learned when looking at Santa’s business, and it’s not in the moral lesson of giving away free gifts to children; it’s in the value of planning. I know “bah-humbug”, but we’re in business for a reason and that’s to make money!
Marketing is often what differentiates you and your competitor. Seldom does your product have real and measurable variances to that of your competition. For instance, grocery stores, hardware stores and especially video stores offer essentially the exact same products as their competitors. So market strategy and the creative message is the only true differential, yet marketing seems to be the least planned business activity.
We all think, why can’t my sales just appear the same way Santa’s presents magically do all over the world?
Sitting down with marketing professionals and really looking at your business to seriously determine your target market and creative message is extremely important. So many companies will place ads in a variety of mediums with seemingly perfect randomness, and then wonder why it doesn’t work as they had hoped.
In developing your marketing plan you should:
- Discover the true value of your service offerings to your consumer
- Determine what it is that creates the emotional attachment
- between your product and the consumer
- Understand your full competitive landscape and how you differ
- Cultivate a realistic view of your target market and ideal customer
- Determine and develop who you are as a brand
- Find the best way to communicate with your customers.
By taking the time and spending the money to build your plan, you will vastly increase your return on investment and your market share. You will stretch your marketing dollars because you will become efficient. You will know who it is you’re speaking to and how to get them to listen.
When we think of marketing, we often see the tactics. We instantly think of logos, business cards, print ads, radio, TV, direct mail, and social media (the ultimate buzz word). But these are merely tools in the marketer’s toolbox; the real value comes from using them effectively and that means serious planning and strategy. A good carpenter makes cabinet building look so effortless we think that we can do it, too. But when we start the process, we begin to discover how difficult it is- not just in the actual construction but also in the design and planning. Knowing which materials to use and how to use them is key.
We all know that we grow our business by:
- Acquiring more customers
- Persuading each customer to buy more products
- Persuading each customer to buy more profitable products, or “up selling” each customer
Unfortunately, it doesn’t magically happen like Santa’s presents. We need to take the time to develop a solid plan that includes looking at our market, creative message and our industry. We also need to recognize our inabilities and to accept that we’re not experts in every field of business. Some things are best left to the professionals.
So set aside some milk and cookies, and contact a marketing professional to help you plan your future.
Submitted by Byron Richards. Find him at www.glowparties.ca. Contact him at byron@glowparties.ca
